Feds to NJ Transit: You Owe Us $271 Million for ARC Work. NJT: Not So Fast

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On Monday, the Federal Transit Administration sent this letter to NJ Transit requesting immediate repayment of $271 million in federal money spent on preliminary work for the ARC tunnel project killed by Governor Chris Christie on October 27th.

The federal government had obligated $350 million already for the initial phase of planning and construction. Of that, New Jersey has spent just over $271 million and the feds want it back. NJ Transit, for its part, is saying not so fast. Their response is below the FTA letter.

ARC Repayment Letter

NJ Transit issued Transportation Nation this response:

"NJ TRANSIT received the FTA request for repayment on November 8, 2010.  At this time, we are reviewing the request, and are assessing our options.  NJ TRANSIT does not agree that the issues are as clear cut as portrayed in the FTA letter."